SMG Europe, the owners of the Newcastle Metro Radio Arena which was
rumoured to be in the process of taking over the running of the Newcastle
Opera House, also known as the Tyne Theatre, whose operating company
has ceased trading, has issued the following statement:
Adderstone Group, owners of the Tyne Theatre, which closed its doors
last month, is delighted to report that they have reached provisional
terms of agreement with SMG Europe for the leasing of the theatre’s
auditorium and Bistro Bar.
SMG Europe is the owner of the Metro Radio Arena and operators of
a number of large high profile venues throughout Europe, and the world’s
largest venue management company.
The Theatre operators were forced to step down following non-payment
of debts to Adderstone and others.
Colin Revel, Executive Director of Metro Radio Arena said "We
are involved in complex legal discussions in conjunction with the
Adderstone Group regarding the leasing and operation of the Theatre
and Bistro Bar only, we are not involved in discussions relating to
any other areas of the complex. We are keen to help with the future
of this great historic building for the North East, and there is a
willingness together with the Adderstone Group and Newcastle City
Council to find a medium or long term solution."
A successful conclusion to these discussions will only occur once
all legal, health, safety, insurance and operational issues have been
agreed on.
Speaking about the ongoing discussions, Ian Baggett, managing director
of Adderstone said: "The closure of the theatre has been a complex
and sensitive issue and we have been in detailed discussions with
SMG Europe about how we might structure a deal to re-open the Tyne
Theatre as a theatre, live music and entertainments venue. As an outstanding
example of architecture and the last remaining working Victorian theatre
in the world, we are committed to finding a means of ensuring the
future of the theatre. We have put a lot of work into this deal and
I’m confident that, in SMG, we have the solution that has eluded
so many of our predecessors."
SMG Europe is not involved in purchasing the existing business from
the Receiver, and has had no contact with previous owners/operators
Dovetail, nor with any of the event organisers or Promoters that had
events contracted with them.
Paul Tappenden, Metro Radio Arena’s Marketing Director added,
"Our involvement has only been possible following a sympathetic
approach by the Adderstone Group, and implementation of a very tight
business plan that will be developed over the next few weeks, should
current discussions reach a satisfactory conclusion. Despite much
enthusiasm at the Theatre, business over recent years has not been
profitable, resulting in fewer shows being contracted with Promoters.
We hope to revitalise this interest utilising our positive local reputation
with these Promoters, our financial stability and worldwide group
experience. These strengths, coupled with utilisation of our excellent
staff at the Metro Radio Arena should also facilitate commercial ventures,
including sponsorships and corporate projects to aid future growth."
At this time, it is not possible to say exactly when the Theatre
will open its doors again, however should all future discussions go
well, it is hoped to target an Autumn opening.
